View previous attempt $21,500520,00095,000$ DIMSDALE SPORTS COMPANY Balance Sheet December $31$ Assets Cash Accounts receivable Inventory Equipment $564,000$ Less: Accumulated depreciation $70,500$ Total assets Liabilities and Equity Liabilities Accounts payable $375,000$ Loan payable $13,000$ Taxes payable idue March $15)$ Equity Common stock $470,500$ Retained earnings $179,500$ Total liabilities and equity $493,5001,130,000650,0001,130,000$ To prepare a master budget for January February $,$ and March, use the following information a $.$ The company's single product is purchased for $$20$ per unit and resold for $$56$ per unit $.$ The inventory level of $4,750$ units on December $31$ is more than management's desired level, which is $20\%$ of the next month's budgeted sales units. Budgeted sales are January $7,000$ units February $8,750$ units March, $10,750$ units; and April, $9,000$ units All sales are on credit. b $.$ Cash receipts from sales are budgeted as follows: January $,$ $ $242,600$ ; February $$720,360$ March, $$499,590$ c $.$ Cash payments for merchandise purchases are budgeted as follows : January $ $70,000$ February $,$ $ $321,000$ March$ $100,600$ d $.$ Sales commissions equal to $20\%$ of sales dollars are paid each month Sales salaries $($ excluding commissions $)$ are $$6,500$ per month e $.$ General and administrative salaries are $$11,000$ per month $.$ Maintenance expense equals $$1,800$ per month and is paid in cash. New equipment purchases are budgeted as follows : January $,$ $ $38,400$ February $ $93,600$ ; and March $,$ $ $24,000$ Budgeted expense is January $ $6,275$; February $ $7,250$ ; and March $ $7,500$